Partnering for Tomorrow: Lessons in Long-Term Procurement Success
Coliban Water Reclamation Plant
Australia’s water sector is under pressure
Climate variability, population growth, and ageing infrastructure are converging to place pressure on Australia’s water sector. Meeting these challenges demands more than just delivering projects on time and on budget. It requires procurement and contracting models that embed resilience, drive innovation, and deliver value for communities over decades.
Across Australia, utilities and governments have applied a spectrum of delivery models to achieve these outcomes:
Traditional delivery provides public control and accountability.
Alliances enable collaborative problem-solving and innovation.
Public-Private Partnerships (PPPs), mobilise private capital and expertise for large, capital-intensive projects.
The lesson? No single model is universally “best”. Success depends on aligning risk allocation with capability, embedding clear performance incentives, and designing procurement pathways that are both competitive and efficient.
The power of getting risk right
Optimal risk allocation is at the heart of successful procurement. Assigning risks to the party best placed to manage them is essential, but it requires nuance. Poorly balanced frameworks can drive up costs, deter innovation, or leave communities exposed. Done well, risk allocation considers:
whole-of-life costing,
retained risk versus transferred risk, and
the broader benefits that innovation can unlock.
Incentives that drive performance
Equally important are the incentives built into contracts. Measurable and enforceable performance standards , backed by transparent metrics, help maintain trust, align stakeholder interests, and reward innovation. Service obligations that extend across the asset lifecycle ensure that communities benefit from efficiency and high-quality delivery well beyond the construction phase.
For councils, governments, utilities and industry, the task is clear: plan proactively for water-intensive infrastructure, embed efficiency standards and recycled water use in approvals, invest in innovation that reduces environmental footprints, and engage communities early on water trade-offs.
Procurement pathways that work
The procurement process itself is as critical as the contracting model chosen. Governments and utilities are increasingly recognising the value of:
Early market engagement to test feasibility and encourage innovation.
Competitive tension to deliver value without unnecessary cost or delay.
Streamlined, transparent processes that give proponents confidence in governance and probity.
Well-sequenced procurement—aligned with jurisdictional requirements and supported by strong communication—creates the conditions for collaboration, innovation, and lasting value.
Lessons from recent projects
Sphere’s advisory experience across major Australian water projects highlights a consistent theme: procurement success is not just about the contract. It is about designing a framework that balances accountability with flexibility, competition with efficiency, and short-term delivery with long-term outcomes.
Our recent case studies showcase how this balance has been achieved in practice, demonstrating the value of tailored procurement frameworks across complex infrastructure projects.
Looking ahead
The water sector’s future will be shaped not by adherence to a single delivery model, but by the ability to apply structured, evidence-based approaches to procurement. Governments and utilities that carefully balance risk, incentives, and process will be best placed to:
attract investment,
foster innovation, and
secure long-term community value.
In short, the opportunity is clear: partner for tomorrow by designing procurement models that deliver enduring outcomes for future generations.
